Soul Pattinson net profit doubles

Washington H Soul Pattinson
Ltd says net profit more than doubled in fiscal 2011 after the investment firm benefited from New Hope Corporation Ltd's sale of a stake in
Arrow Energy
.

Net profit rose to $284.91 million for the six months ended January 31 from $123.41 million a year earlier, Sydney-based Washington H said in a statement on Thursday. Profit before non-regular items fell 10.3 per cent to $87.1 million, mainly because New Hope's operating result declined on a stronger Australian dollar, increased transport costs and wet weather.

Washington H holds a 59.7 per cent stake in New Hope, which reported its results on Tuesday.

"The group has a robust balance sheet with cash reserves of $2.24 billion and we do not have any external borrowings from financial institutions," chairman Robert Millner said in a statement.

"While this puts us in an excellent position to pursue available investment opportunities, the current bevy of proposed taxes by the federal Labor government, such as the mining, carbon and flood taxes, is creating uncertainty in the investment market."

Washington H declared an interim dividend of 15¢ per share, fully franked, up from 14¢ a year earlier.

Revenue declined 5.2 per cent to $384.1 million, Washington H said.

Washington H said the value of its listed investment portfolio, including controlled entities and associates, was $4.13 billion at January 31, up from $4.07 billion six months earlier.